In this study, STS316L powders prepared by gas atomization are used to manufacture bulk structures with dimensions of 10 × 10 × 10 mm3 using selective laser melting (SLM). The microstructures and hardness of the fabricated 316L stainless steel has been investigated with the laser beam overlap varied from 10% to 70%. The microstructures of the fabricated STS316L samples show a decrease in the balling and satellite of powders introducing defect in the bulk samples and the porosity caused by the gap between the molten metal pools disappearing as the overlap ratio increases, whereas a low overlap ratio results in significant balling and a large amount of isolated powders due to the increased gap between the melt pools. Furthermore, the highest value in Vickers hardness is obtained for the sample fabricated by 30% overlapped laser beams. These results show that the overlap ratio of laser beams in the SLM process should be considered as an important process parameter.